With all the recent news around Bitcoin and Mt. Gox, what do you think the future really holds for digital currency and why?
The following answers are provided by the Young Entrepreneur Council (YEC), an invite-only organization comprised of the world’s most promising young entrepreneurs. In partnership with Citi, YEC recently launched StartupCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.
1. Bitcoin Will Continue the Cycle
You’re going to see a pattern in any new technology. Invention, early adoption, media misinformation, speculation, bubble, deflation, then traction. Bitcoin is like the Internet in the mid-’90s: misunderstood by most. Heavy speculation of the Internet resulted in the dot-com bust, and it wasn’t until after the bust that it became what it is today. Bitcoin is going through the same cycle.
Mark Cenicola, BannerView.com
2. Setbacks Won’t Last
As is true at the front end of every technological curve, there are significant segments of the community that foretell doom for the new technology. Whether it’s because naysayers do not see the big picture or because they’re financially tied to the existing system, time, and technology are not on their side. The current safety setbacks are just that — setbacks. They won’t last.
Brennan White , Watchtower
3. People Should Let It Run Its Course
Right now, Bitcoin is in a sensationalist phase. People are either hyping it up or hoping it will fail. People should let it run its course. The media has influenced its adoption by mainstream companies and countries. Now there are conventional investors and large corporations behind Bitcoin, so it’s doubtful it will be made illegal. Exchangers will probably face forced regulation compliance.
Gideon Kimbrell, InList Inc
4. Bitcoin May Fade Entirely
Unless security features can be greatly improved and the suspension of transactions can be ceased, you may eventually see virtual currencies fade entirely.
Andrew Schrage, Money Crashers Personal Finance
5. There Will Be More Trial and Error
6. Digital Currency Will Move Global Commerce Forward
Every time I hear about Bitcoin’s troubles, I’m tempted to point back to the first experiments with paper currency hundreds of years ago in China. They went horribly; it took several tries to create a paper currency people could actually use. Digital currencies will require the same trial and error to become established, but they are a necessary technology for moving global commerce forward.
Thursday Bram , Hyper Modern Consulting
7. Bitcoin Will Allow Mobile Payments
We have a lot to figure out before digital currency replaces traditional currency, but it’s definitely inevitable. I think the first things to nail down are mobile payments and security. Progress is already underway, and a full digital currency is what will come from that progress.
Chuck Reynolds , Levers
8. Bitcoin Will Pave the Way for Cryptocurrencies
The issues with Mt. Gox are only a bump in the road for Bitcoin. The future might be rocky, but I feel that it will keep growing rapidly and pave the way for other cryptocurrencies. While they may not prove to be the absolute future of currency in the world, I do believe that within a lifetime, we’ll see it become widely used and a staple in conversations about finance and economy.
Daniel Wesley, DebtConsolidation.com
9. Digital Payments Will Continue to Grow
Digital payments have been around for the past decade. Companies, such as PayPal and Square, make it easy to incorporate a digital payment solution into your business, but these services come with transaction processing fees. In contrast, there is no business or central authority that controls Bitcoin. There are no fees for large transactions or negligible fees for small transactions.
Björn Stansvik , MentorMate
10. Bitcoin Is Experiencing Growing Pains
Things like this tend to happen in the early days of technology, as people are just starting to understand how to manage it effectively. Didn’t you feel any sort of growing pains when you started your first company before eventually taking off? Most likely you did, and that’s the exact same thing going on with Bitcoin.
Andy Karuza, Brandbuddee